Wrongful dismissal, also referred to as wrongful termination or unfair dismissal, is a critical aspect in employment law that needs to be understood by every employee.
Knowing your rights is crucial in navigating employment relationships within the framework of the Employment Act of Singapore.
This article explores wrongful dismissal in great depth, shedding light on its definition, the Tripartite Guidelines on Wrongful Dismissal, and various grounds for wrongful dismissal claims.
1. What Is Wrongful Dismissal?
Wrongful dismissal, as defined by the Employment Act, occurs when an employer terminates an employee’s contract of service in violation of the employment agreement or the law.
Recognising that wrongful dismissal can take several forms, including unjust termination, unfair dismissal, and constructive dismissal, is crucial.
After the Employment Act underwent revisions on April 1, 2019, all employees, irrespective of their income level, are now granted safeguards against unjust termination by their employers.
Tripartite Guidelines On Wrongful Dismissal
To provide clarity on wrongful dismissal claims, the Ministry of Manpower (MOM), National Trades Union Congress (NTUC), and Singapore National Employers Federation (SNEF) have jointly issued the Tripartite Guidelines on Wrongful Dismissal.
These guidelines offer detailed insights into what constitutes wrongful dismissal and serve as a reference point for employers and employees when addressing such cases.
Grounds For Wrongful Dismissal Claims
There are several instances where a wrongful dismissal case can be claimed by an employee. This ranges from poor performance to vindictive punishment. In any case, if you believe your employment has been terminated shortly following a similar situation, you may file a claim.
Misconduct
Wrongful dismissal claims based on misconduct typically involve an employee being terminated for alleged wrongdoing. For example, an employer may dismiss an employee for purportedly violating company policies, engaging in unethical behaviour, or breaching contractual obligations.
To establish a wrongful dismissal claim, the employee must demonstrate that the allegations were unfounded or disproportionate to the offence. Before considering termination, employers should follow a fair and transparent disciplinary process, including warnings and opportunities for employees to rectify their behaviour.
Poor Performance
Wrongful dismissal claims related to poor performance arise when an employee is terminated due to alleged inadequacy in job performance. Employers must follow a well-defined process, which includes providing performance improvement plans and offering reasonable opportunities for employees to enhance their performance.
Dismissal for poor performance may be wrong if employers fail to adhere to these guidelines. Employers should maintain clear performance standards, regular evaluations, and documentation to support their actions.
Circumstances Where Dismissal With Notice Is Wrongful
If an employee was dismissed with a notice but without any stated reason and believes it to be unfair, they need to show that there was an unjustified or wrong reason behind the dismissal.
Discrimination
Wrongful dismissal claims based on discriminatory grounds involve terminating an employee due to race, gender, age, religion, disability, or nationality. Discrimination in employment termination is strictly prohibited under the Employment Act and other anti-discrimination laws.
Employers should always assess employees based on merit, skills, and performance rather than discriminatory criteria. Employees who believe they were dismissed due to discrimination can file a complaint with the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) or seek legal redress.
Deprivation Of Benefit
Wrongful dismissal claims may arise if an employer unjustly withholds employment benefits or entitlements, such as bonuses, allowances, or salary payments, without valid reasons.
Employers must fulfil the employment contract terms and adhere to applicable employee compensation and benefits laws.
To Punish An Employee For Exercising Employment Rights
Employees have specific rights in the workplace, such as the right to join a union, engage in collective bargaining, or lodge complaints about workplace conditions. Wrongful dismissal claims may occur when an employee is terminated as retaliation for exercising these rights. Employers should respect and safeguard employees’ rights and refrain from punitive actions in response to legitimate exercises of these rights.
Given Reason Is False
Wrongful dismissal claims can also be based on providing false or fabricated reasons for an employee’s termination. For example, if an employer claims an employee’s position is redundant when it is not, this can be a basis for a wrongful dismissal claim. Employers should provide accurate and truthful reasons for dismissal to maintain transparency and avoid potential legal issues.
2. What Is Considered As Proper Dismissal?
Employment in Singapore can be terminated by either the employer or the employee. However, it must be done by the terms of the employment contract and the Employment Act. Proper dismissal methods include:
Termination with Notice: Under the Employment Act, employers and employees must provide notice when terminating employment. The notice period should be clearly defined in the employment contract and must be adhered to unless both parties agree otherwise.
Termination without Notice: In certain circumstances, employment can be terminated without notice. This includes situations where an employee has shown serious misconduct, such as theft or violence, or if the employee cannot perform their job due to medical reasons.
In such cases, employers can terminate employment without notice but must follow due process and provide a valid reason.
Right to Terminate Without Notice: Employers in Singapore have the right to terminate an employee without notice if they have committed a serious breach of the employment contract or engage in gross misconduct.
However, it is crucial to note that employers must follow a fair and just procedure, including conducting a proper investigation and providing the employee an opportunity to be heard.
3. What To Do When You Have Been Wrongfully Dismissed
Review Your Employment Contract: Carefully examine your employment contract to understand the terms and conditions of your employment. Pay particular attention to:
- Notice periods: Check the notice period required by both you and your employer in case of termination. This period must be honoured unless mutually agreed upon otherwise.
- Termination clauses: Look for any specific clauses that pertain to termination, such as grounds for dismissal and disciplinary procedures.
- Any documented instances: Gather any written communication, emails, or records of meetings related to your employment, especially those relevant to your dismissal.
Seek Legal Advice: Consulting an experienced employment lawyer is crucial if you believe your dismissal was wrongful.
- Initial consultation: Meet with a qualified employment lawyer specialising in wrongful dismissal claims. During this initial meeting, details of your case can be established.
- Assessment of your case: The lawyer will assess the strength of your claim by examining your employment contract, the circumstances surrounding your dismissal, and any evidence you have.
- Legal options: Based on their evaluation, the lawyer will advise whether you have a valid wrongful dismissal claim and the potential outcomes.
File a Wrongful Dismissal Claim: If you and your lawyer determine that you have a valid case, you can proceed to file a wrongful dismissal claim. Here are the steps involved:
- Choose the appropriate authority: You can file your claim with the Ministry of Manpower (MOM) or the Employment Claims Tribunal (ECT). Consult your lawyer to determine which option is best suited for your case.
- Complete the necessary forms: Fill out the required forms and documentation to initiate your claim. Your lawyer will guide you through this process.
- Provide evidence: Compile all relevant documentation and evidence to support your claim. This may include your employment contract, records of communication, and any proof that your dismissal was wrongful.
Mediation and Negotiation: Resolving disputes through mediation or negotiation can be a quicker and less adversarial way to resolve. Consider the following:
- Engage in mediation: MOM offers mediation services to help employers and employees resolve disputes amicably. A neutral third party will facilitate discussions to reach a fair settlement.
- Negotiation with your employer: Your lawyer can negotiate with your employer’s legal representation to explore a mutually agreeable resolution. This can involve discussions on compensation, reinstatement, or other forms of resolution.
Proceed to Formal Proceedings: If mediation and negotiation do not lead to a satisfactory resolution, you may be advised by your lawyer to proceed with formal legal proceedings. This typically involves presenting your case before the Employment Claims Tribunal (ECT) or pursuing litigation through the civil Courts.
If necessary, your lawyer will guide you through the legal process and represent your interests in Court.
4. Burden Of Proof
Regarding wrongful dismissal claims in Singapore, the burden of proof is a crucial concept to grasp. Employees who believe they have been wrongfully dismissed must demonstrate that their termination violated either the terms of their employment contract or the Employment Act.
Employees can rely on various evidence to support a wrongful dismissal claim. This may include their employment contract, which outlines the terms and conditions of their employment, as well as any amendments or addendums.
Correspondence, such as emails or letters, can also be valuable evidence, especially concerning the reasons for termination. Additionally, records of discussions or meetings with the employer may shed light on the circumstances leading to the dismissal.
It’s important to note that the timeline for resolving wrongful dismissal claims in Singapore is typically swift. The legal system places a premium on resolving employment disputes promptly. Employees and employers are encouraged to mediate and negotiate as an initial step in resolving disputes.
If these efforts fail, they can turn to formal avenues, such as the Employment Claims Tribunal (ECT) or the Ministry of Manpower (MOM), to seek resolution.
5. Remedies And Compensation
If an employee’s wrongful dismissal claim is upheld, they may be entitled to various remedies and compensation. The specific remedies available can vary based on the case’s circumstances and the authorities’ discretion.
- Reinstatement: In some cases, employees may be reinstated to their former positions if their wrongful dismissal claim is successful. Reinstatement means the employee is restored to their job as if the dismissal never occurred. However, it’s important to note that reinstatement is not always possible or practical, especially if trust is broken between the employer and the employee.
- Back Pay: Employees who win a wrongful dismissal complaint may be entitled to back pay. Back pay is the compensation for the salary and benefits that the employee would have received if they had not been wrongfully dismissed. It covers the period from the date of dismissal to the date of reinstatement or the resolution of the case.
- Compensation for Losses: In addition to reinstatement and back pay, employees may receive compensation for any losses due to the wrongful dismissal. This compensation is meant to cover financial hardships or damages incurred due to the unjust termination.
Conclusion About Wrongful Dismissal In Singapore
Understanding wrongful dismissal in Singapore is essential for both employees and employers. This article has covered crucial aspects, including wrongful dismissal claims, the Employment Act, the importance of employment contracts, common reasons for dismissal, guidelines on wrongful dismissal, and discriminatory grounds.
If you or someone you know has been wrongfully terminated, it’s advisable to seek legal counsel. Engage with The SIngapore Lawyer for expert advice and assistance.
Remember that with the right information and representation, you can better defend your rights as an employee.
Frequently Asked Questions About Wrongful Dismissal In Singapore
What Role Does An Employment Contract Play In A Wrongful Dismissal Claim?
Employment contracts serve as essential evidence and help establish the terms and conditions of employment.
Can I File A Wrongful Dismissal Claim If I Resign From My Job?
No, wrongful dismissal claims typically apply when an employer terminates your employment contract against your will. Resigning voluntarily is generally not considered wrongful dismissal.
What Are The Guidelines Employers Should Follow To Avoid Wrongful Dismissal Claims?
Employers should follow guidelines outlined in the Employment Act, such as giving notice, conducting fair investigations, and following due process.
Are There Any Fees Or Costs Associated With Filing A Wrongful Dismissal Claim?
There may be nominal fees for filing a wrongful dismissal claim with the Employment Claims Tribunal (ECT). However, these fees are generally reasonable, and no attorney fees are involved at the ECT.
Are There Any Circumstances Where An Employee Can Be Terminated Immediately Without Notice Or Compensation?
Yes, in cases of gross misconduct or serious breaches of company policies, an employer may terminate an employee without notice or compensation. However, the employer must be able to prove the seriousness of the misconduct.
